H.B. No. 3698 amends the Texas Labor Code to establish participation in reemployment services as a condition for eligibility for unemployment benefits. The bill specifies that an unemployed individual must participate in these services, such as job search assistance, if they have been identified by a profiling system as likely to exhaust their eligibility for regular benefits and in need of such services. However, exceptions are made if the individual has completed the service or has reasonable cause for not participating. The bill further clarifies that participation is also required if the commission determines it will help achieve specific goals, including reducing unemployment duration and strengthening the integrity of the unemployment compensation program.

The changes made by this Act will only apply to claims for unemployment benefits filed on or after its effective date of September 1, 2025. Claims filed before this date will continue to be governed by the previous law. The bill was passed by both the House and Senate with significant support, indicating a strong legislative intent to enhance the reemployment services framework within Texas's unemployment benefits system.

Statutes affected:
Introduced: Labor Code 207.021 (Labor Code 207)
House Committee Report: Labor Code 207.021 (Labor Code 207)
Engrossed: Labor Code 207.021 (Labor Code 207)
Senate Committee Report: Labor Code 207.021 (Labor Code 207)
Enrolled: Labor Code 207.021 (Labor Code 207)